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3 years ago

Adding up all of the income in an economy in a given year is one approach to calculating which of the following?

2 answers:

8 0

The correct answer is <span>b.)GROSS DOMESTIC PRODUCT

In reality, the answer is a bit complex. The GDP is actually used to determine whether or not an economy is healthy and developing, but this does not actually show that the people are living good, rather that the production is occurring efficiently.</span>

belka [17]3 years ago

5 0

The answer is B. Gross Domestic Product.

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Smith and Johnson are partners. Smith's capital balance in the partnership is $56,000, and Johnson's capital balance $42,000. Sm

Semenov [28]

Answer:The bonus that is granted to Smith and Johnson equals:$5,500

that is $2750 each for Smith and Johnson since they share equally.

Explanation:

Given that

Smith's capital balance = $56,000

Johnson's capital balance = $42,000

Since the partners agree to accept Benson with 25% interest

Benson invests $40,000

Now, After allowing Benson,

Total Partnership Equity =Smith's Capital + Johnson's Capital + Benson's Investment

=$56,000 + $42,000 +$40,000 = $138,000

The share of Benson in equity is given as,

$138,000 x 25% = $34,500

The Bonus that is present for Smith and Johnson is

Benson's investment - Benson share of equity

= $40,000 - $34,500

=$5,500

Thus,

When equally shared becomes $2750 each for both Smith and Johnson

6 0

3 years ago

Cash generated by the regular operations of a business; usually computed as net income plus or minus the effects of other curren

Oliga [24]

Cash generated by the regular operations of a business; usually computed as net income plus or minus the effects of other current assets and current liabilities on cash flows, plus noncash expenses deducted in arriving at net income, minus noncash revenues included, less certain gains and plus any losses that are included in the total proceeds received from sale of fixed assets is given below

Explanation:

Cash flows from operating activities show the net amount of cash received or disbursed during a given period for items that normally appear on the income statement. You can calculate these cash flows using either the direct or indirect method.
The direct method deducts from cash sales only those operating expenses that consumed cash. This method converts each item on the income statement directly to a cash basis.
Alternatively, the indirect method starts with accrual basis net income and indirectly adjusts net income for items that affected reported net income but did not involve cash.
The Statement of Financial Accounting Standards No. 95 encourages use of the direct method but permits use of the indirect method.
Whenever given a choice between the indirect and direct methods in similar situations, accountants choose the indirect method almost exclusively. The American Institute of Certified Public Accountants reports that approximately 98% of all companies choose the indirect method of cash flows.
The direct method converts each item on the income statement to a cash basis.
The indirect method adjusts net income (rather than adjusting individual items in the income statement) for (1) changes in current assets (other than cash) and current liabilities, and (2) items that were included in net income but did not affect cash.
The most common example of an operating expense that does not affect cash is depreciation expense.

5 0

3 years ago

The following transactions occurred during 2014. Assume that depreciation of 10% per year is charged on all machinery and 5% per

serg [7]

Answer:

Here are your general entries:)

Profit and loss account $19,800

Accumulated depreciation $112,200

To Building $132,000

( Building torn down recorded)

Building torn down expense $5,100

To cash $5,100

(paid to contractor)

Cash $2,100

Accumulated depreciation $11,200

Profit and loss account $1,900

To machinery $16,000

(disposal of machine recorded)

Freight expense $300

To cash $300

(freight paid recorded)

Repairs of machinery $2,000

To cash $2,000

(New gear brake added to machinery)

Profit and loss account $1,400

Accumulated depreciation $2,100

To old base $3,500

(old base expensed out)

Machinery account $5,500

To cash $5,500

(New base constructed)

Depreciation of base $550

To accumulated depreciation $550

Paint of building expense $6,900

To cash $6,900

Explanation:

Addition of gear brake not added to cost of machinery because it does not extend the useful life of machine.

4 0

3 years ago

Suppose an increase in demand in the market for mutual funds (a financial capital market) causes the interest rate to increase f

Cerrena [4.2K]

With the increase in the demand of the mutual funds, the quantity supplied of the mutual funds will also increase because of the increase in the rate of interest.

<u>Explanation:</u>

All in all, when the rate of interest is rising, it normally makes shared assets, and different ventures, less appealing. This is on the grounds that the expense of acquiring increments with an expansion in loan fee and people and organizations has less cash to place in their portfolio.

As a result of this increase in the cost of borrowing, the quantity supplied of the mutual funds increases in the market, thus increasing the supply in the financial market.

5 0

3 years ago

Flitter reported net income of $17,500 for the past year company had $200,000 in assets and $50,000 in liabilities. By the end o

lozanna [386]

Answer:

A) 7.0%

Explanation:

Average total Assets = (Opening Assets + Closing Assets) / 2

Average total Assets = (200,000 + 300,000) / 2

Average total Assets = $250,000

Formula for return on assets:

Return on assets = Net Income /Average total Assets

Return on assets = 17,500 / 250,000

Return on assets = 0.07

Return on assets = 7%

Correct option is A) 7.0%

7 0

3 years ago